The Decline of Secured Debt

• 成果类型: Article
• 署名作者: Benmelech, Efraim; Kumar, Nitish; Rajan, Raghuram
• 署名单位: Northwestern University; National Bureau of Economic Research; State University System of Florida; University of Florida; University of Chicago; Northwestern University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13308
• 发表日期: 2024
• 页码: 35-93
• 关键词: capital structure; CORPORATE REORGANIZATIONS; Control rights; default risk; INVESTMENT; INFORMATION; priority; earnings; equity; governance

摘要

The share of secured debt issued (as a fraction of total corporate debt) declined steadily in the United States over the twentieth century. This stems partly from financial development giving creditors greater confidence that high-quality borrowers will respect their claims even if creditors do not obtain security upfront. Consequently, such borrowers prefer retaining financial flexibility by not giving security up front. Instead, security is given contingently-when a firm approaches distress. This also explains why, superimposed on the secular decline, the share of secured debt issued is countercyclical.